Gasoline prices collapse for summer

CBS.MarketWatch.com

SAN FRANCISCO (CBS.MW) -- This Fourth of July, drivers will have an additional reason to celebrate - independence from inflated gasoline prices.

Gas prices nationally fell 18 cents a gallon to $1.53 a gallon in the past month, and analysts expect continued declines from May's all-time high of $1.73 to near $1 a gallon in some parts of the country. Chicago has seen its average price fall to $1.61 a gallon from $2.01 last month, and nearby Detroit's average fell 33 cents to $1.53, according to the American Automobile Association.

"It's unprecedented to see a drop like that in a four-week period," AAA spokesman Atle Erlingsson said. "Traditionally, we see gas prices increase during the summer, but this year, you're going to see the exact opposite."

Due Diligence: Tamsa

Five weeks of rising U.S. gasoline inventories, and already some say that petroleum prices have had their day; that explorers and producers have seen their highs, and that profits have peaked for drillers and oilfield services companies. Investors may want to exercise some caution, however, before turning their backs on the petroleum industry and tossing their cash back into the other stocks, like the still-reeling technology sector. There are more ways yet to reap healthy gains from the energy business. Overlooked by many U.S. investors, Mexico-based Tamsa
TAM, -0.42%
is among the world's largest suppliers of seamless steel pipe to the oil and gas industry.

Energy price dip comforts Greenspan

A cautiously optimistic Alan Greenspan welcomed recent signs of energy price relief for U.S. households and businesses in a speech Thursday.

But he said the Federal Reserve remains watchful of lingering effects on the broader economy and of the risk that the tentacles of California's power crisis could stretch to the rest of the nation. "Electric power costs continued to rise through May, but overall energy prices paid in April and May were down from levels of the first quarter, suggesting some easing in pressures on profit margins from energy this quarter," Greenspan said in prepared remarks to the Economic Club of Chicago.

The firms failed to provide any documents in response to "months-old" subpoenas issued by the Senate, Senator Bill Morrow, R-Oceanside said in a statement. "It is not an indication of the culpability of these firms in the state's ongoing energy crisis," he said. "However, it is an indication that these firms have refused to help the committee determine their degree of culpability." Duke
DUK, +0.66%
Reliant
REI, +0.44%
Williams
WMB, -3.57%
NRG
NRG, -0.16%
and AES
AES, -0.67%
were exempted by amendment from the original motion as the committee hearing progressed, Morrow said, adding that the committee will meet on July 10 to vote on whether or not to send the finding to the full Senate.

Federal regulators approve NY price cap

Federal regulators approved a plan Thursday to limit wholesale power rates in New York this summer. Under the Federal Energy Regulatory Commission's plan, once electrical rates on the spot market rise to a certain level, they would be subject to a cap if the generators can't prove that their cost of producing the power caused the increase. The price control would stay in effect until the end of October.

Bonneville cuts pending rate increase to 46%

A federal electric power wholesaler in the Pacific Northwest said Friday that a load reduction effort by utilities has caused it to cut an expected rate increase set for October.

Bonneville Power Administration's acting administrator, Steve Wright said customers faced a wholesale rate increase of 250 percent or more just a little over two months ago, but "due to an unprecedented load reduction effort by utilities and industries," to cut demand from BPA by 2,277 average megawatts, the pending increase has been cut to 46 percent.

Oil stocks: Set to gush or slide again?

So far, this hasn't been a very kind year to oil sector stocks. But with the PHLX Oil Services Index drilling seven-month lows, analysts are beginning to wonder whether now may be the right time to jump back in.

Oil up ahead of Tuesday OPEC output decision

Crude futures prices climbed back above $26 a barrel Friday as traders weighed in the possibility that OPEC could decide to actually cut its oil production levels when it meets next week.

OPEC has "pretty much cemented" its decision of no change to output at the July 3 meeting, analysts at London's GNI Research said in a daily note. However, Fimat energy John Kilduff said he wouldn't be "totally blown away" if the oil cartel actually decides to cut production.

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